Sold Some Coinbase Due to Uncertainty on SEC Probe

Ark Investment Management sold part of Coinbase Global (COIN) in late July following a report that the US Securities and Exchange Commission (SEC) is investigating whether certain listings of crypto exchanges can be considered securities, CEO Cathy Wood told Bloomberg on Monday. Said on TV.

Ark chose to sell some of its large Coinbase stake due to the reported SEC investigation and how it could potentially change Coinbase's business model.

Arc, however, continues to be bullish on crypto. An Arc analyst hinted at Coinbase's recent partnership with asset manager BlackRock ( BLK ) in a note to clients Monday.

"BlackRock's decision to partner with Coinbase is a strong signal that institutions consider crypto — starting with bitcoin [BTC] — a new asset class. We agree that bitcoin has earned an allocation in well-diversified portfolios," Arc analyst Yassin Elmandzra said in a note. .